Ras Al Khaimah Mainland

Business Setup In Ras Al Khaimah Mainland

Some investors have their eye on the Ras Al Khaimah central area in the United Arab Emirates for organizational arrangement. The ability to continue working anywhere in the United Arab Emirates is the reason behind Ras Al Khaimah Central Area’s importance. Forming a company in Ras Al Khaimah (RAK), one of the seven emirates of the United Arab Emirates (UAE), is a straightforward process that offers several advantages to entrepreneurs and businesses.

Types Of Companies

Free Zone Companies: RAK has several free zones that offer 100% foreign ownership, tax exemptions, and simplified business regulations. Examples include RAK Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA).
Mainland Companies: Companies outside free zones are considered mainland businesses and require a local partner (UAE national) with at least 51% ownership, although various legal structures allow for mitigation of control and profit sharing.

Steps To Form A Company

Choose a Business Activity: Determine the type of business activity you wish to undertake. Different activities may have specific licensing requirements.
Choose a Company Name: Select a unique name that complies with UAE naming conventions and is available for registration.
Submit Application: Prepare and submit the necessary documents to the relevant authority, whether it’s the free zone authority or the Department of Economic Development (DED) for mainland companies.
Obtain Approvals and Permits: Depending on your business activity, you may need approvals from other government entities, such as the Ministry of Economy or the relevant regulatory bodies.
Draft Memorandum of Association: This document outlines the company’s constitution, including shareholders, capital, and operational details.
Lease Office Space: For free zone companies, lease office space within the free zone. Mainland companies also require a physical office address.
Obtain Business License: Upon approval of your application and completion of necessary inspections, you will receive your business license, enabling you to operate legally

Benefits OF Company Setup In RAK

Tax Benefits: Ras Al Khaimah offers tax advantages such as zero corporate and personal income taxes for most businesses.
Strategic Location: Located near major markets in the Middle East, Asia, and Europe, RAK provides excellent access to global trade routes.
Infrastructure and Support: The emirate boasts modern infrastructure, reliable utilities, and various support services for businesses.
Stable Economic Environment: RAK provides a stable political and economic environment conducive to business growth and investment

Considerations

Legal Requirements: Ensure compliance with UAE laws and regulations, including those related to employment, taxation, and business operations.
Costs: While RAK offers cost-effective business setups compared to other global hubs, consider all costs involved, including licensing fees, visa costs, and office rent.
Cultural Sensitivity: Understand and respect local customs, traditions, and business etiquette when operating in Ras Al Khaimah

Documents Required For Company Setup In RAK

Passport copies of shareholders and directors.
Proof of address for shareholders.
Business plan.
Memorandum of Association (MOA).
Lease agreement for office space.
NOC (No Objection Certificate) from current sponsor (if applicable).

FAQ

What are the types of companies I can establish in Ras Al Khaimah?

In Ras Al Khaimah, you can establish both free zone and mainland companies. Free zone companies offer 100% foreign ownership, tax exemptions, and simplified regulations. Mainland companies require a local partner with at least 51% ownership, although various legal structures allow for control and profit-sharing arrangements.

What are the advantages of setting up a company in a RAK free zone?

RAK free zones offer numerous advantages, including:

100% foreign ownership.
0% corporate and personal income tax.
Full repatriation of profits and capital.
No currency restrictions.
Efficient business setup process with minimal paperwork.

Can I own 100% of my business in Ras Al Khaimah?

Yes, if you establish your company in a RAK free zone, you can own 100% of your business. Mainland companies require a local partner with at least 51% ownership, but various legal structures allow for control and profit-sharing arrangements that protect foreign investors.

Are there any restrictions on hiring employees for my company in Ras Al Khaimah?

As per UAE regulations, companies must sponsor their employees for residency visas. The number of employees you can hire may depend on your business activity, office space, and other factors. Employment laws must be followed regarding contracts, working hours, and wages.

How long does it take to set up a company in Ras Al Khaimah?

Setting up a company in a RAK free zone can be completed in a matter of days to a few weeks, depending on the completeness of your documents and the specific free zone’s procedures. Mainland company setups may take slightly longer due to additional approvals and the involvement of local partners.

What are the costs involved in setting up a company in Ras Al Khaimah?

Costs can vary depending on the type of company (free zone or mainland) and business activity. Typical costs include registration fees, license fees, visa fees, office rent, and possibly costs associated with legal services and document processing. Free zones often offer cost-effective packages to attract businesses.